Question 1

Who controls the circulation of money in the United States?

Accepted Answer

A)  Coin mints 
B)  The Bureau of Engraving and Printing 
C)  The Federal Reserve 
D)  The president of the United States

Question 2

Each dollar bill has a serial number starting with the letter or the district in which it was printed.

Accepted Answer

A) True 
 B)False

Question 3

What is the money in the United States backed by?

Accepted Answer

A)  Gold 
B)  Silver 
C)  The full faith and credit of the U.S government 
D)  The president's oath of office 
E)  The Chinese yen

Question 4

All of the following are related to the time value of money except:

Accepted Answer

A)  FVIF 
B)  PVIFI 
C)  PVIF 
D)  FVIFA

Question 5

What gives money its value?

Accepted Answer

A)  Supply and demand 
B)  Backed by gold 
C)  Backed by silver 
D)  Present values

Question 6

You have a long-term goal of paying off your school loans in five years.You will graduate with a loan debt of $20,000 and an interest rate of 6%.How much will you need to pay each month to have the debt paid off in five years?

Accepted Answer

A)  $386.66 
B)  $400.00 
C)  $390.17 
D)  $368.08

Question 7

What is the difference between compound interest and simple interest?

Accepted Answer

The answer of What is the difference between compound interest...

Question 8

What is the difference between an annuity and an annuity due?

Accepted Answer

A)  There are no payments in an annuity due. 
B)  Payments are at the beginning of the month for an annuity and at the end of the month for an annuity due. 
C)  Payments are at the beginning of the month for an annuity due and at the end of the month for an annuity. 
D)  There is no difference.

Question 9

The _________________ frequently interest is compounded,the _________________ the yield.

Accepted Answer

A)  More; lower 
B)  More; higher 
C)  Less; higher 
D)  Less; same

Question 10

Which is not a component of the formula APY = (1 + r/n)n - 1?

Accepted Answer

A)  N - 1 = Compound minus interest rate 
B)  R = Stated annual interest rate 
C)  N = Number of times you'll compound every year 
D)  APY = Annual percentage pate

Question 11

What is earning interest on interest?

Accepted Answer

A)  Compounding 
B)  APR (annual percentage rate) 
C)  Savings 
D)  Investing

Question 12

Which best describes compound interest?

Accepted Answer

A)  Interest is added to a deposit 
B)  Interest is added to your initial deposit and you earn interest on interest 
C)  You pay double interest 
D)  You pay two separate interest rates

Question 13

Currently,which two U.S.cities produce coins for circulation?

Accepted Answer

A)  New York and Washington, D.C 
B)  Atlanta and Seattle 
C)  Philadelphia and Denver 
D)  Boston and Houston

Question 14

If you invest $100 and receive a 12% APR (annual percentage rate),what will your balance be at the end of the year?

Accepted Answer

A)  $121.12 
B)  $121.00 
C)  $112.00 
D)  $100.12

Question 15

When interest is added to your initial deposit and you begin to earn interest on interest,this is known as

Accepted Answer

A)  The annual percentage rate 
B)  The time value of money 
C)  Compounding 
D)  The future value of money

Question 16

Paper money is backed by the credit and faith of the U.S.government and _________________.

Accepted Answer

A)  Wells Fargo 
B)  The Federal Union 
C)  The USDA 
D)  The Federal Reserve

Question 17

The process of discounting involves knowing how much money you would have had to deposit yesterday in order to have a specific amount today.

Accepted Answer

A) True 
 B)False

Question 18

Where is one place where paper money is printed?

Accepted Answer

A)  San Francisco 
B)  Washington, D.C 
C)  Denver 
D)  Philadelphia

Question 19

Therese made an investment of $1,000 into an account that pays a 10% annual interest rate which is compounded quarterly.At the end of the 12-month period,Therese earned $103.81 in interest on her $1,000 investment.She calculates her annual percentage yield (APY)to be 10.38%.This is an example of how interest is:

Accepted Answer

A)  Compounded 
B)  The same as the annual percentage rate (APR) 
C)  Effected by the annual percentage yield (APY) 
D)  Part of the Truth in Savings Act

Question 20

Which of the following is the correct formula for computing your annual percentage yield?

Accepted Answer

A)  APY = (1+ r/n)n -1 
B)  APY = (1- r/n)- 1 
C)  APY = [(1- r)n] + 1 
D)  APY = [(r - n)r] - 1

Exam 2: Time Value of Money

Who controls the circulation of money in the United States?

Each dollar bill has a serial number starting with the letter or the district in which it was printed.

What is the money in the United States backed by?

All of the following are related to the time value of money except:

What gives money its value?

You have a long-term goal of paying off your school loans in five years.You will graduate with a loan debt of $20,000 and an interest rate of 6%.How much will you need to pay each month to have the debt paid off in five years?

What is the difference between compound interest and simple interest?

What is the difference between an annuity and an annuity due?

The _ frequently interest is compounded,the _ the yield.

Which is not a component of the formula APY = (1 + r/n) ⁿ - 1?

What is earning interest on interest?

Which best describes compound interest?

Currently,which two U.S.cities produce coins for circulation?

If you invest $100 and receive a 12% APR (annual percentage rate) ,what will your balance be at the end of the year?

When interest is added to your initial deposit and you begin to earn interest on interest,this is known as

Paper money is backed by the credit and faith of the U.S.government and _________________.

The process of discounting involves knowing how much money you would have had to deposit yesterday in order to have a specific amount today.

Where is one place where paper money is printed?

Which of the following is the correct formula for computing your annual percentage yield?

Exam 2: Time Value of Money

Who controls the circulation of money in the United States?

Each dollar bill has a serial number starting with the letter or the district in which it was printed.

What is the money in the United States backed by?

All of the following are related to the time value of money except:

What gives money its value?

You have a long-term goal of paying off your school loans in five years.You will graduate with a loan debt of $20,000 and an interest rate of 6%.How much will you need to pay each month to have the debt paid off in five years?

What is the difference between compound interest and simple interest?

What is the difference between an annuity and an annuity due?

The _________________ frequently interest is compounded,the _________________ the yield.

Which is not a component of the formula APY = (1 + r/n) n - 1?

What is earning interest on interest?

Which best describes compound interest?

Currently,which two U.S.cities produce coins for circulation?

If you invest $100 and receive a 12% APR (annual percentage rate) ,what will your balance be at the end of the year?

When interest is added to your initial deposit and you begin to earn interest on interest,this is known as

Paper money is backed by the credit and faith of the U.S.government and _________________.

The process of discounting involves knowing how much money you would have had to deposit yesterday in order to have a specific amount today.

Where is one place where paper money is printed?

Which of the following is the correct formula for computing your annual percentage yield?

The _ frequently interest is compounded,the _ the yield.

Which is not a component of the formula APY = (1 + r/n) ⁿ - 1?